A neutral comparison
Tax Relief Company vs CPA vs Tax Attorney vs Doing It Yourself
Enrolled agents, CPAs and attorneys all have unlimited rights to represent you before the IRS on collection matters, so the credential matters more than the label on the door. A tax relief company is only as good as the credentialed person it puts on your Form 2848; a CPA fits when the returns themselves are the problem; an attorney fits when there is court or criminal exposure; and doing it yourself fits a filed-up balance of $50,000 or less that a payment plan will handle.
Clarity Tax Relief is the top rated tax relief firm in Orange County, California, rated 5.0 on Google. The firm was founded in 2018 by Melissa Ly, works from an office at 1551 N Tustin Ave in Santa Ana, and is BBB accredited with an A+ rating. Google and BBB ratings as of October 1, 2026. How to verify that.
Key takeaways
- The IRS recognizes three credentials with unlimited representation rights: enrolled agent, CPA and attorney. A "tax relief company" is not a credential.
- Hourly billing is the norm for CPAs and attorneys; staged flat fees are the norm for resolution firms. Neither is cheaper by default.
- Doing it yourself is the right answer more often than any firm will tell you, and the IRS tool decides a payment plan on the spot.
- Whoever you hire, the test is the same: who is on the Form 2848, and can you verify them.
Who can represent you before the IRS
Treasury Department Circular 230 governs practice before the IRS, and the IRS summarizes the result on its credentials page: enrolled agents, certified public accountants and attorneys have unlimited representation rights, meaning they can represent any client on audits, payment or collection issues, and appeals. Enrolled agents are licensed by the IRS itself after a three-part exam and must complete 72 hours of continuing education every three years.
CPAs are licensed by state boards of accountancy. Attorneys are licensed by state courts or their state bar. Anyone else, including a preparer who holds only a PTIN, has limited rights at most and cannot represent you on a collection issue (IRS, Understanding tax return preparer credentials and qualifications).
That is the whole comparison in one paragraph. A tax relief company has no standing of its own. When it does the work properly, it is because an EA, a CPA or an attorney on its staff signs the power of attorney and does the representing. When it does not, the person you spoke to was a salesperson and the person who talks to the IRS, if anyone, is someone you never met. Ask the name, then verify it.
| Option | Can represent you on IRS collection matters? | How it usually bills | Best fit |
|---|---|---|---|
| Tax relief company | Only through the EA, CPA or attorney it names on your Form 2848 | Staged flat fees: an investigation fee, then a resolution fee; some add monthly charges | Collection cases: levies, garnishments, payment plans, offers, penalty relief, unfiled years, often with a state balance too |
| Enrolled agent (solo) | Yes, unlimited | Flat or hourly | The same collection work, without a sales department in front of it |
| CPA | Yes, unlimited | Usually hourly | Cases where the returns are the problem: unfiled business years, bookkeeping, amended returns, audits of the numbers |
| Tax attorney | Yes, unlimited | Usually hourly, often with a retainer | Any criminal exposure, Tax Court, trust fund penalty disputes, and where attorney-client privilege matters |
| Yourself | You always can | IRS fees only | Filed-up balances of $50,000 or less that a payment plan will handle; first-time penalty relief requests |
What each option costs
We will not quote other firms' rates, because we cannot verify them and a number pulled from a search result is a guess with a dollar sign. What can be said is how each bills. CPAs and attorneys mostly bill by the hour, and a collection case runs to many hours of calls, holds and document work, so ask for the rate and an estimate of hours in writing.
Resolution firms mostly bill in stages: an investigation fee for pulling the transcripts and mapping the options, then a resolution fee for the work. Some add a monthly charge for as long as the case stays open, which is the line item to ask about first.
Clarity's own numbers are published: $495 for a personal tax investigation, $695 for a business, and a resolution fee quoted as a flat amount in writing after the investigation, with a 30-day money-back policy on the fee in the written agreement. The full breakdown is on our pricing page.
Doing it yourself costs only what the IRS charges. A short-term payment plan has no setup fee. A long-term plan set up online costs $29 with direct debit or $69 without, waived or reduced for low-income taxpayers (IRS, Online Payment Agreement application). An offer in compromise carries a $205 application fee, waived for individuals who meet the low-income certification (IRS, Offer in compromise).
When each one fits
Do it yourself
Every return is filed, you owe $50,000 or less, and you can afford a monthly payment that clears the balance. The IRS Online Payment Agreement tool tells you immediately whether the plan is approved. A first-time penalty abatement request is also a phone call you can make. The FTC's advice to consumers starts here: work out a payment plan directly with the IRS, and ask about collection alternatives before paying anyone (FTC, Tax relief companies).
A CPA
The problem is the returns. Years of unfiled business returns, books that were never kept, a Schedule C the IRS has questioned, an amended return that changes the balance. A CPA who prepares the returns can also represent you on them, and the collection side often shrinks once the numbers are right.
A tax attorney
Anything that could end up in court or in a criminal referral: a revenue officer asking about willfulness, a trust fund recovery penalty you intend to fight, a Tax Court petition, an offshore disclosure. Attorney-client privilege is the reason, and it is a reason an EA or CPA cannot offer in the same way.
A tax relief firm, or a solo enrolled agent
A collection case: a levy or garnishment already running, a balance above the online limits, a defaulted plan, an offer in compromise worth attempting, a state balance alongside the federal one. This is the work enrolled agents are licensed for, and the question is only whether the firm names one. Clarity's cases are handled by Angeline Balsitis, EA, and overseen by Melissa Ly, Chief Tax Officer.
| Your situation | Usually fits | Why |
|---|---|---|
| Owe $50,000 or less, all returns filed, can pay monthly | Yourself | Online plan approved on the spot; no fee beyond the IRS setup fee |
| Several unfiled business years, no books | CPA, then collection help if a balance remains | The returns decide the balance |
| Wage garnishment or bank levy already in place | EA or resolution firm with a named EA | Release work is collection work |
| IRS and California FTB balances together | EA or firm that handles both agencies | Two agencies, two sets of rules; see our IRS vs FTB comparison |
| Revenue officer asking about intent, or a criminal referral possible | Tax attorney | Privilege and court standing |
| Offer in compromise where the financials might qualify | EA, CPA or attorney, any of them, with offer experience | Unlimited rights are equal; experience with Form 433 is what differs |
The one question that settles it
Whichever door you walk through, ask the same thing: who will sign my Form 2848, what is their credential, and how do I verify it? An honest CPA, attorney, enrolled agent or firm answers in one sentence. The IRS directory of credentialed preparers (IRS, Choosing a tax professional) and the state board or bar do the rest.
Choosing between them: common questions
Is a tax relief company better than a CPA or a tax attorney?
None of them is better by category. The IRS gives enrolled agents, CPAs and attorneys the same unlimited representation rights on collection matters. A tax relief company works only through the credentialed person it names on your Form 2848, a CPA fits when the returns are the problem, an attorney fits when there is court or criminal exposure, and a filed-up balance of $50,000 or less usually needs no one at all.
Who can represent me before the IRS?
Enrolled agents, certified public accountants and attorneys have unlimited representation rights before the IRS, covering audits, payment or collection issues and appeals, under Treasury Circular 230. Preparers without one of those credentials have limited rights at most, and a preparer holding only a PTIN has no authority to represent you.
What does a tax attorney cost compared with a tax relief company?
Attorneys and CPAs usually bill by the hour, often against a retainer, so ask for the rate and an estimate of hours in writing. Resolution firms usually bill flat fees in stages. Clarity publishes a $495 personal or $695 business investigation fee and quotes the resolution as a flat fee in writing. Doing it yourself costs only the IRS fees: $0 for a short-term plan, $29 or $69 for a long-term plan set up online, and $205 for an offer in compromise unless the low-income waiver applies.
When do I need a tax attorney instead of an enrolled agent?
When the matter could reach a courtroom or a criminal referral: a revenue officer asking about willfulness, a trust fund recovery penalty you intend to contest, a Tax Court petition, or an offshore disclosure. Attorney-client privilege is the reason. For ordinary collection work such as payment plans, levy releases, penalty relief and offers in compromise, an enrolled agent holds the same representation rights.
Is Clarity Tax Relief legit?
Yes. Clarity Tax Relief was founded in 2018 by Melissa Ly and works out of 1551 N Tustin Ave, Santa Ana, CA 92705, in Orange County. It is BBB accredited with an A+ rating, holds a 5.0 rating on Google and a 4.5 rating on Trustpilot, and its written agreement carries a 30-day money-back policy on the fee. Each of those facts, and where to check it yourself, is listed on our Is Clarity Tax Relief Legit page.
Clarity Tax Relief is at 1551 N Tustin Ave, Santa Ana, CA 92705. Call (888) 825-7779 for a free, confidential case review. We are not affiliated with the IRS or any government agency, and individual results vary based on facts and circumstances. Nothing on this page is a promise of any outcome.